SPCSA adopts FY24 financial ratings; removes notices for five schools, continues or issues notices for several others

The Nevada State Public Charter School Authority on April 18 adopted its fiscal year 2023–24 Financial Performance Framework ratings and then acted on a slate of notices based on those audits and staff analysis.

Board staff told members the framework measures short- and long-term school finances — including current ratio, days cash on hand, total margin, debt-to-asset and debt/lease-coverage measures — using each charterholder’s audited fiscal year 2023–24 statements and follow-up documentation. Katie Broughton, SPCSA director of authorizing, told the board the authority used the audited statements as an objective basis for recommendations and then requested supplementary forecasts and explanations from schools with weak indicators.

After staff briefings, the board voted to remove financial “notice of concern” status from five charter holders that showed improvement in the audited year: Civica Nevada Career and Collegiate Academy, Democracy Prep Nevada, MATTER Academy of Nevada, Signature Preparatory, and SLAM Nevada. SPCSA staff said each of those schools improved key indicators such as debt-to-asset ratio, unrestricted days cash on hand or total margin.

At the same meeting the board continued or issued financial notices for multiple charter holders whose audited results remained troubling. Staff recommended and the board acted as follows: continue financial notices of concern for Battle Born Academy, Discovery Charter School, Akipo Academy, Pinecrest Academy of Northern Nevada and continue other existing oversight measures where staff documented improvement but remaining risk; continue the financial notice of breach for Explore Academy (which had earlier been on a breach); and issue a financial notice of breach to PilotED Cactus Park Elementary (see separate article on the acquisition below). The board also voted to issue notices of concern to Southern Nevada Trades High School and Young Women’s Leadership Academy.

The board took two further procedural steps on two high-profile items: it postponed action on Sage Collegiate (recommended for a notice of breach by staff) and on Nevada Prep (recommended for a notice of breach by staff) to the May 30 board meeting in order to allow each school to bring key financial stakeholders and documentation requested by staff (bond/financing terms, updated budgets tied to verified enrollment, documentation of federal grant receipts and PERS plans). SPCSA General Counsel Samantha King Powell read a motion directing staff and each school to provide the requested materials before the May meeting.

Why it matters: the Financial Performance Framework drives SPCSA monitoring and intervention. Notices of concern and breach are formal steps that can limit a school’s access to financing or change the level of monitoring; staff said they rely primarily on audited fiscal statements because of the legal weight of that independent review.

Votes at a glance - Adopt FY24 Financial Performance Framework ratings: motion carried (voice votes). - Remove financial notice of concern and return to financial good standing: Civica Nevada Career and Collegiate Academy (motion by Member Salcedo; carried), Democracy Prep Nevada (motion moved and carried), MATTER Academy of Nevada (motion carried), Signature Preparatory (motion carried), SLAM Nevada (motion carried). - Continue financial notice of concern: Battle Born Academy (motion carried); Discovery Charter School (motion carried); Akipo Academy (motion carried); Pinecrest Academy of Northern Nevada (motion carried). - Continue financial notice of breach: Explore Academy (motion carried). - Issue financial notice of breach: PilotED Cactus Park Elementary (motion carried). Note: the board approved an acquisition of PilotED Cactus Park by MATTER earlier in the meeting; staff said the fiscal-year-24 audit data nonetheless support a breach notice for the PCSD entity that remains on the books through June 30. - Issue financial notice of concern: Southern Nevada Trades High School (motion carried); Young Women’s Leadership Academy (motion carried). - Postponed to May 30 at request of board (to allow schools to present bond/financing and updated budgets): Sage Collegiate (staff recommended breach; postponed); Nevada Prep Charter School (staff recommended breach; postponed).

What staff asked schools to supply: audited financial statements are the baseline; for contested cases staff requested a 3- to 5-year financial forecast, an FY26 budget tied to demonstrable enrollment, documentation of federal grant receipts, PERS repayment plans (if relevant), and where applicable the proposed bond/loan term sheets and contingencies. Staff said it will circulate in writing the precise list of materials requested to each school named in the motions.

Board members asked staff to make clear to schools that timeline, conservative enrollment assumptions and legally binding loan/pledge documentation would be required to alter a staff recommendation.

Bottom line: the SPCSA used the FY24 audits to update the portfolio picture, removed notices for several schools that improved, and signaled closer monitoring or formal breach notices for schools where long-term liabilities or zero days cash on hand made the near-term financial outlook precarious. Several schools were given a month to return with firm financing documents before the board’s May meeting.